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Status: 2000 posts! I don't know whether I should feel great or sad about it! LOL
Joined: 04 Oct 2009
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Kudos [?]: 1124 [0], given: 109

Location: Peru
Schools: Harvard, Stanford, Wharton, MIT & HKS (Government)
WE 1: Economic research
WE 2: Banking
WE 3: Government: Foreign Trade and SMEs
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New post 23 Oct 2010, 09:22
Please rate this Issue essay:

“Corporations and other businesses should try to eliminate the many ranks and salary grades that classify employees according to their experience and expertise. A ‘flat’ organizational structure is more likely to encourage collegiality and cooperation among employees.”
Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations, or reading.

Some people believe that corporations should eliminate scales and salary grades based on the experience and expertise of the employees; according to these people, this would promote cooperation in the organization. However, other people think that this policy is not a good idea. This issue is a controversial one but a closer examination will reveal that ranks and scales in the wages and salaries is mandatory because of several reasons.

First, a policy which eliminates salary grades doesn’t promote the individual initiative of the employees. In other words, because employees receive the same amount in salaries, this eliminate the desire of the employees of getting more experience and expertise. They will turn mediocre. As a result, the efficiency of the company will drop if it is compared with the efficiency of a company that does not have this type of policy.

Second, a same amount in wages policy will make that employees quit and go to companies which pay more when they consider the experience and expertise of the employees. We must recognize that people want a better economic situation for their families; they want , for example, better salaries in order to send their children to college and go to Disney World in vacations. In this sense, if a company offers better salaries, probably employees will leave their company which doesn’t have scales in wages. Consequently, this company will lose again efficiency in its operations.

However, I must admit that the point of people who agree with a policy which promotes the same amount in salaries is also logic and reasonable. This type of policy is good and useful to eliminate bad feelings towards those employees who earn more; consequently, there will be more cooperation in the company. But, as I mentioned before, there are other negative consequences which could reduce or eliminate the good results of this cooperation.

In summary, I don’t agree with a policy which eliminates salary grades and scales because it reduces the individual initiative of employees, and it could push employees to quit their company (that one which implements this policy). As you can see this type of policy is not useful to increase the efficiency of the company.


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Last bumped by metallicafan on 23 Oct 2010, 09:22.

Kudos [?]: 1124 [0], given: 109

Please rate Issue 2   [#permalink] 23 Oct 2010, 09:22
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